Code to prevent ‘poverty barons’ from cashing in

The move is designed to deal with the controversy over so-called “poverty barons” – individuals being paid large sums from the aid budget.

Two of the top earners are reported to command over £200,000 a year each at a time when overseas spending is under pressure. A Government commitment to spend 0.7 per cent of national income on aid is controversial at a time of severe domestic spending cuts.

The code, which covers value for money, transparency and accountability, is voluntary but the Department for International Development said the majority of its 12 biggest suppliers had signed up.

They will be expected to give written statements that they will seek “opportunities to reduce costs and waste”.